Which of the following supplier balances would indicate a high risk in relation to the COMPLETENESS of the liability recorded at the year end? A A supplier with a high balance at the year end and with a low volume of transactions during the year B A supplier with a low balance at the year end and with a high volume of transactions during the year C A supplier with a low balance at the year end and with a low volume of transactions during the year D A supplier with a high balance at the year end and with a high volume of transactions during the year
This question had 2 separate answers, in past paper it says B and in BPP text it says D
Looks to me like a typo in BPP’s text. A low balance has greater potential for understatement (i.e. due to omission, transactions are incomplete). If a balance is high, it is far more likely to be complete.